Best chance of being accepted for a loan...

jeojadi

I have six credit cards of varying interest rates, and until recently was doing a fine job of paying them all back with money to spare.

However, due to poor forward planning, I've ended up in a situation where every penny is now only just scraping the minimum payments.

I earn a healthy amount - enough for £700-750 per month after bills/essentials - but I need a few months breathing space. I think the best thing needed here is a loan.

I have £3000, £2500, £2000, £600, £500 and £200 balances outstanding, so approx. £8800. If I could get a loan, I could afford the repayments and get rid of this in 12 months.

However - my credit rating is awful due to past stupidity.

According to Noddle, I am 1/5 and very unlikely to obtain credit.

So my question to you excellent people is - which company will give me the best chance of getting a 12 month loan?

Thanks in advance.

J

Moneysaverchris

jeojadi wrote: »

I have six credit cards of varying interest rates, and until recently was doing a fine job of paying them all back with money to spare.

However, due to poor forward planning, I've ended up in a situation where every penny is now only just scraping the minimum payments.

I earn a healthy amount - enough for £700-750 per month after bills/essentials - but I need a few months breathing space. I think the best thing needed here is a loan.

I have £3000, £2500, £2000, £600, £500 and £200 balances outstanding, so approx. £8800. If I could get a loan, I could afford the repayments and get rid of this in 12 months.

However - my credit rating is awful due to past stupidity.

According to Noddle, I am 1/5 and very unlikely to obtain credit.

So my question to you excellent people is - which company will give me the best chance of getting a 12 month loan?

Thanks in advance.

J

Without sky high interest none.

~Beanie~

The only people who are likely to give you a loan are the kind of people who will come round and smash your knee caps if you don't pay.

Forget the loan idea, its a non-starter.

jeojadi

When you say sky-high, what are we talking? Over 12%?

poppasmurf_bewdley

Or with sky-high interest, probably any Payday loan company.

But seriously, you do not get out of financial trouble by borrowing more money. You do it by reducing spending.

You could start by paying off your credit cards with the lowest amounts owing, the cutting them in half, followed by the next one, etc.

Only the financially well off or the financially inept have five credit cards. Which are you?

Tixy

What exactly is on your credit report (not the score/rating) but the base data. Do you have defaults? CCJs? missed payments?

How much are the minimum payments on your credit cards?
You say you need some breathing space for a few months - well loan repayments on 1 year loan will be far more than the minimum payments on your cards.

It will depend on what is on your file but if you have a poor credit history and are struggling to make minimum payments then its unlikely any lender will approve you for more credit, especially not a further £8800.
Your own bank may be a possibility, thats assuming you have managed your bank account well, and any other credit you have with the bank and not had bounced DDs etc.

jeojadi

There is one default for £1 on a credit card from 12 months ago. I paid the full balance off, but two months later they sent me a bill saying I owed £1. I paid it, but it now shows as a default. I have written to them and Noddle, complaining - no response yet.

I am inept - I earn enough, it is purely down to poor planning, bad habits and stupidity. All the cards are cut up, btw. The minimum payments are totalling £450 at present.

Tixy

Try the snowball calculator. http://www.whatsthecost.com/snowball.aspx If you pay £750 a month and if none of your APRs are more than say 20% the debt would be cleared in 12-13 months.
Even if all the debt was on 30% you could still be clear in 14 months.

gb12345

jeojadi wrote: »

I earn a healthy amount - enough for £700-750 per month after bills/essentials - but I need a few months breathing space. I think the best thing needed here is a loan.

If you have £700-£750 a month spare why are you only paying the minimum payments? Chuck everything you've got at them and get the balances reduced - forgot buying new clothes/holidays/whatever it is you are currently wasting your money on.

jeojadi wrote: »

I have £3000, £2500, £2000, £600, £500 and £200 balances outstanding, so approx. £8800. If I could get a loan, I could afford the repayments and get rid of this in 12 months.

What are the actual credit limits on those cards?

As a rule of thumb, add together the credit limits then add on the £8,000 that you need to borrow and that is what a lender will be underwriting you on. They will then likely decline you if that amount was more than 50% of your salary (so you would need to be earning substantially more than £32k).

The above is ignoring your poor credit history, which makes a loan even more unlikely.

StuC75

You do contradict yourself in terms of what you earn \ have disposable but only make minimum payments. As others suggest 'cut back' for a few months and make inroads to debts held - tackling the highest APR's first regardless of which balance that is...

debtcutter

poppasmurf_bewdley wrote: »

You could start by paying off your credit cards with the lowest amounts owing, the cutting them in half, followed by the next one, etc.

Only the financially well off or the financially inept have five credit cards. Which are you?

Do you mean start by paying off the card with the highest interest rate?

Agree with most of the rest of your post though